Show Chili and tho State Department WASHINGTON A ug 2Ufhe unexpected turn of affairs in Chili is a subject of paramount para-mount interest in the state ana navy departments de-partments today Since the receipt of Consul McCreerys cablegram last night announcing the capture of Valparaiso by the Congressional forces no further official offi-cial news has come from the scene of war Admiral Browns failure to report is believed be-lieved to be due to the fact that he is very ousy disposing of the vessels and seaaen of his squadron so as to insure American property against damage and American residentSiOf the surrendered city against violence Then too it is believed no delays his report until events bhal have so shaped themselves asl enable him to state the conclusion of movements and occupation and also until he feels he requires instruction instruc-tion from tie navy department relative to his future course Minister Lascano called upon Acting Secretary Sec-retary Wharton this morning as did a prominent lawyer of tbis city who has been acting as attorney for Balmacedas cause Tho acting secretary of state could not of course say anything respecting confidential con-fidential diplomatic communications It cannot be Known whether they added to the war news or not I is believed here Balmaceda has been completely defeated Still it is to bo expected that tbe result of so pronounced a success as the capture of I Valparaiso may give the adhesion to the Congressional party of that always I considerable unmoor of men who are attracted I at-tracted by success Also it is recalled that I most of the military supplies of Balma cedas forces have entered the country through Valparaiso and that Balmacedas small navy lost its fortified port which may have a depressing effect upon the fortunes for-tunes of his party As long as Balmaceda remains in possession of Santiago the cap ital of Chili and until the Congressional party shall have set up a de facto govern ment which our minister reports is really the government of the country the de parnment of state cannot have relations with the Congressional party and must continue to recognize Balmaceda as president presi-dent and Se or Lascano as minister of Chili A later cablegram was received from Errazuriz regarding yesterdays battle saying Balmacedas troops numbered 12000 t 4 i > i men Three thousand prisoners and all his I artillery were taken Tbe torpedo boats and all the others are in the power of the Dongresslonalists Valparaiso vas occupied I occu-pied without resistance Balmacedas lieutenants tenants sought safety on foreign vessels The siderable Congressionalists losses wore incon I |